Groundwater Protection Council Annual MeetingSeptember 29, 2015
Jill Cooper, HSE Manager Reporting & Advocacy
ANADARKO PETROLEUM CORPORATION
Sector
Agriculture Municipal & Industrial
Total of All Others
Source: Colorado Oil & Gas Conservation Commission 2010.
Breakdown of “All
Others”
Recreation
Large Industry
Thermoelectric Power Generation
85%
7%
8% 0.1% O&G
Putting Water Use in Context
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Wells will typically produce energy for 30 years
Colorado OGCC projects that water usage for oil and natural gas is about 0.1% of total water use in Colorado
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Oil and Natural Gas – Part of the Solution
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OpportunitiesWater sourcing, management and disposal
Not a significant user of water compared to other sectors
Bring “trapped water” to the surface – net gain to the system
Collaboration to achieve progress
Actions necessary to maximize opportunitiesImprovements in water treatment technologies
Reduced cost of water treatment
Laws and regulations that support beneficial reuse of water
Entities interested in accepting the treated water
Energy Water Initiative – a group of companies working together to achieve progress on maximizing opportunities
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Energy Water Initiative (EWI)
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EWI is a collaborative effort to study, communicate and improve lifecycle water use and management in onshore oil and natural gas exploration and production
Technology and knowledge-sharing
Recommended management practices and technologies
Fact-based information to stakeholders
Follows API’s anti-trust provisions during all meetings and discussions
Anadarko Petroleum Corp. ConocoPhillips Co. QEP Resources, Inc.
Apache Corporation Devon Energy Royal Dutch Shell Plc
BG Group Hess Corporation Southwestern Energy
BP Plc Marathon Oil Corporation Talisman Energy USA, Inc.
Chesapeake Energy Newfield Exploration Co. XTO Energy, Inc.
Chevron Corporation Pioneer Natural Resources Co.
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EWI 2014-2015 Case Studies Project
Illustrate the diverse, regional water resource challenges the industry faces
Share innovative strategies and lessons learned to:
Continually evolve stewardship practices
Advance water resources management practices
Educate stakeholders about the unique water management challenges across producing regions
Share the advancements the industry is proactively achieving to address these challenges
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EWI 2014 Case Study Findings
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INDUSTRY TRENDS BENEFITS
Improving Fracturing Chemistry Increasing use of non-fresh water
Innovation in TreatmentTechnology
Increasing feasibility of produced water reuse
Increasing Water ConveyanceSystems
Reducing truck traffic
New Water Storage DesignsProvides flexibility and reliability when using non-fresh water
Increasing TransparencyImproves relationships with stakeholders
Dedicated Water StaffImproves water management, planning technical support and performance
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TREND 1: Development and improvement in fracturing chemistry enables industry to use non-freshwater
Fracturing methods: slickwaterversus crosslink
Engineers select the method based on multiple variables
Water quality and quantity variesCrosslink: higher quality, less volumes
Slickwater: lesser quality, higher volumes
Reservoir characteristics and well design vary by region and will affect volumes of water
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TREND 1: Development and improvement in fracturing chemistry enables industry to use non-freshwater
Water sources vary by region
Regulatory programs vary by state
Increased use of brackish water in oil and natural gas
Innovations in hydraulic fracturing have enabled E&P companies to be less reliant on freshwater sources and expand options in water-stressed areas such as these brackish wells used by Devon Energy. Photos Source: Devon Energy
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TREND 2: Treatment technology innovation continues to make produced water reuse more feasible
Increased viability of use of produced water
Operators are better able to use lower quality water due to technological improvements
Treatment of produced water is an option in certain circumstances
Pioneer Natural Resources partnered with a startup company with a new carrier gas extraction (CGE) process that desalinates produced water with less energy and lower operating costs than comparable commercial technology. The first-of-its-kind plant was designed and installed quickly. The plant treats water for reuse, and the CGE process reduces total dissolved solids (TDS) from about 120,000 parts per million (ppm) to about 500 ppm. Photo source: Pioneer Natural Resources USA
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TREND 3: Improvements in water conveyance for gathering and distribution reduce truck traffic
Companies are increasingly using pipelines
Decreasing truck traffic, road impact, and safety issues
Temporary lines can be used for short term needs
Systems need to be flexible
Layflat hose provides compact, large capacity pipe
Newfield ExplorationPioneer Natural Resources
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TREND 4: New water storage designs provide flexibility and reliability in alternate non-freshwater sourcing
Steel fracturing tanks, and in ground, modular, lined, and monitored impoundments used to store fresh and produced water
New designs provide flexibility for quantity stored
Type of storage unit can be influenced by surface owner, regulations and topography
Examples of typical in-ground impoundment facilities, one empty (top) and the other filled (bottom). Photos sources: Marathon Oil (top), Pioneer Natural
Resources USA (bottom)
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TREND 4: Water storage technologies
Industry practices prevent leaks, protect groundwater, and safeguard the environment
Advances in the design of large storage systems address variables
Slopes, soil composition, moisture control
Dual liners, sump, liner thickness, covers, monitoring wells
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TREND 5: Transparency improves relationships with communities, industry and regulators
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National registry managed by Ground Water Protection Council (GWPC)
Over 85,000 disclosures to FracFocus (2011-2014)
Chemical Disclosure Required
Chemical Disclosure Being Proposed
States Currently Using FracFocus
States Considering FracFocus
Hydraulic Fracturing Chemical Disclosure State-by-State 7/1/2014
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TREND 5: Transparency improves relationships with communities, industry and regulators
Corporate responsibility is reflected in self-imposed measurement and tracking water
Increased data gathering and public disclosure
Water management strategies can be influenced by landowner agreements
State regulations cover all aspects of water management
EWI is an example of industry collaboration
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TREND 6: Dedicated water staff within E&P organizations improve water management planning, technical support and performance
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EWI companies are creating dedicated internal resources and teams to facilitate water management
It can range from:Developing a separate entity
Centers of excellence
Specific water teams
Companies are centralizing lessons learned, establishing standards, identify subject matter experts
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EWI Encouraging Research
EWI invites universities, agencies, and companies to present on technologies and research
Future research can focus on:Advancing treatment technologies and processes
Improving on analytical methodologies
Enhancing measurement and management of water
EWI is encouraging increased research funding into advancing water treatment technology
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Water Programs Can Include:Outreach to build stakeholder confidence
Collaboration with other operators
Building infrastructure improvements to meet partner needs
Innovating for regional water benefits
Recycling and reusing to conserve and maximize water
Building efficient redundancy and reliability into the system
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ANADARKO PETROLEUM CORPORATION
1. Manage water to support oil and natural gas production
2. Make beneficial use of all water supplies (fresh, flowback, produced) for full water lifecycle
3. Reduce trucking traffic across region
4. Decrease dependence on saltwater disposal wells
5. Reduce demand for fresh water supplies
6. Maximize use of existing facilities and infrastructure
7. Reduce energy demands
8. Enhance social license and environmental stewardship
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ANADARKO PETROLEUM CORPORATION
Over 150 miles of permanent pipeline installed – backbone infrastructure
Over 100 million BBL water moved to-date
Safe and reliable delivery (<1% wait time in 2014)
Eliminates over 2,000 truck trips per day (10 Million miles avoided)
Serves up to four completion crews simultaneously
Incorporates up to 10 different water sources 30 miles
20
miles
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Shared infrastructureAPC short-term use
Irrigation company long-term use
Irrigation company specs
Regional benefitsEnhance river flow
Improve agriculture supply
Beneficially use water
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Drilling Water
Recycled Water Fresh Water
Supply
Well Pad
Blended Supply
Water Distribution System
Discharge
Mobile Facilities
Recycle and Reuse
Fire Suppression
ANADARKO PETROLEUM CORPORATION
Working with other Assets on:
Water On Demand Design
Water Lifecycle Evaluation
Water Risk Assessment
Water Data Management
Water Recycle Technology